The GST was lowered and became a useless source of revenue since purchases were way down and the USA was not buying our products so NAFTA was of no use either. Plus with the dollar at a record high, our goods became too expensive for the US and manufacturing tanked. The banks remained healthy and were able to keep the interest rates low so people could survive. IF the banks had been deregulated like Harper wanted, Canada would have been in a mess. Mortgages, real estate, car loans, business loans were able to continue as the banks kept and followed regulations left in place by Liberal governments, although at a more moderate pace.
The gst was not such a saviour as it mostly replaced the hidden 13% excise tax, plus Mulroney and Harper added the gst to more goods and services even while Harper lowered it. Chretien couldn't get rid of the gst without putting the hidden excise tax onto goods and services. He made a mistake and was smart enough not to make another one and get rid of the gst.